tv MSNBC News Live MSNBC November 27, 2010 9:00am-10:00am EST
tree lighting ceremony. plus, bracing for the worst. what is it about the upcoming wikileaks that is forcing u.s. officials to scramble to contact nations big and small. it's the holiday rush hour. but how did black friday fare in the mad dash for savings? and saving homer, the herculean effort to save a dog trapped in a hole. good morning, everyone. welcome to msnbc saturday. it is 9:00 here on the east coast, 6:00 a.m. out west. new in morning, disaster averted as the fbi arrests a teenager who allegedly tried to detonate a van packed with explosives at a crowded christmas tree lighting in oregon. 19-year-old mohamed osman mohamud born in somalia, a naturalized u.s. citizen now, is under arrest for allegedly plotting the attack. nbc news correspondent pete williams is joining me now. how did the fbi stop this from happening?
>> well, they were in on this from the very beginning. it's clear here that this man that they've arrested, mohamed, had a very strong intent. the fbi says once he was contacted by undercover people posing ann as terrorists who he had struck an an oeshgz with over e-mail communications, once they met him, he's the one that came up with the idea of doing it last august of trying to set off a bomb at a christmas tree lighting ceremony in portland. that's when he came up with this idea that he was fully embraced it, got enthusiastic about it, said he wanted to kill a huge number of people with their families at this ceremony. and, in fact, he was arrested about 5:30 last night pacific time after he rode in a van with one of these undercover people that he thought was a terrorist and tried to detonate what he thought was a real bomb, which was, in fact, a fake. now, it seems quite clear from reading court documents that he
probably couldn't have pulled this off by himself. there was never any actual explosives. it's questionable whether he would have done anything like this if he hadn't been ultimately contacted. but the fact is, investigators say he was the one who was interested in trying to get jihadist training. he was the one who suggested this target. he kept doing all this planning, even after he was questioned by the fbi in june of last year when he tried to leave the country. so, you know, you could, perhaps, say that he wasn't a terribly crafty person, that he would continue this after the fbi realized he was already on to him. but nonetheless, that's what the charge is and it seems quite clear from the court documents that he was very enthusiastic about trying to carry off a terror attack here in the u.s. >> right. this is pretty much all it takes. you don't have to be all that crafty if you get a little luck behind you. but this is a guy who -- he's a college student, pete. he was circulating on campus, probably going to classes like anyone else and communicating
with -- is it a former college student that sort of helped get him going? >> yes. that's -- that appears to be the starting point of the -- of this whole plot appears to be a contact that he received from a college student who had been in the u.s. who sends him an e-mail saying, you know, are you interested in jihad? and the basis of their e-mail seems to be that mohamed would go overseas and get some kind of training. but he never could. and when he couldn't get out of the country wibt appears his attention turned to trying to do something here. >> pete williams, many thanks as always. >> you bet. new this morning, north korea is accusing south korea of using civilians as human shields on that island. two south korean marines and two civilians died when north korea launched a surprise artillery attack this year. the u.s. and south korea will begin four days of war games in the south korean peninsula later today. ian williams is live in seoul,
korea. mike is live at the white house for us. ian, we'll begin with you. north korea, not at all happy about these war games, right? >> reporter: north korea is not at all happy, alex. today, describing those war games as an unpardonable provocation and threatening to retaliate with what it calls a sea of fire. that said, we have seen a lot of this rhetoric before and u.s. officials say they haven't detected any unusual military movement on the northern side of the border. now, the military exercises get under way just a few hours from now. naval exercises, the centerpiece of which, of course, will be the uss george washington. the nuclear powered aircraft carrier with 75 war planes on board. now, this comes at a time of rising passions, as well, in south korea here. today, we saw the funeral of the two young marines who died in tuesday's attack on yeonpyeong island. that funeral was broadcast
nationwide. it was very emotional. and during it, the commander of the south korean marines fired his own verbal salvo towards the north threatening what he called a thousand fold revenge against them. at the same time, there were protests today, some of which ended in scuffles with groups demanding that the south korean government take tougher action against the north. now, if there is a flash point, of course, it remains around yeonpyeong island, which was hit on tuesday. officials have been going door to door to try and ensure that the last civilians are evacuated from the island before these exercises begin sunday, alex. >> okay. thank you very much, ian. let's get more now from mike. mike is live at the white house. good saturday morning to you, mike. >> good morning, alex. >> let's talk about the administration's response but but i think an important point to make is these were war games that were scheduled. this is not as a result of the provocation this week. >> that's right. as a matter of fact, these are the second war games in a little
more than a year that the united states has conducted jointly with the military and south korea. look, the situation is obviously very tense there as ian outlined and the white house here, even though it is a holiday weekend, we've seen national security officials, alex, heading in and out of the west wing, the president being kept abreast of the situation. we have not seen the president obviously in a public capacity and over the last couple of days, this being a holiday weekend, but of course, just prior to thanksgiving, he reiterated the u.s. posture towards south korea. we stand shoulder to shoulder with that nation. there are some 30,000 american troops stationed near the dmz between the north and the south. another 40,000 troops stationed at various bases in japan. an ongoing conflict, obviously, lasting some 60 years. this is something, obviously, that is not welcomed by the white house with everything else that's going on in the world. but they are very much keeping abrett of the situation, alex. >> mike, another thing that is a burden for the administration this weekend, this im pending
wikileaks. >> absolutely. this release coming sometime this weekend allegedly, it hasn't come out yet, said to be some three times as large as the one that dealt with documents in iraq and administration officials have spent the last few days telephoning allies, governments abroad, warning them of what is to become. it appears to be three major things, according the u.s. officials who have briefed nbc news giving us the outline of what we can expect here. and it's all very embarrassing. first of all, relations with russia as the start negotiations, those arm reduction treaties, that treaty now being held up by republicans in the senate as those negotiations move forward, a lot of internal communication and perhaps some disparaging comments about the russian leadership. and that could threaten ratification in the senate, as if that didn't have enough problems as it is now. hamid karzai, the president of afghanistan, another controversial figure, you remember carl ikenberry saying
last year in an interview that he's off his meds. apparently there is more unflatering opinion in these cables, these intelligence opinions from the united states government, internal communications, a lot of concern here on the part of the u.s. government, alex. >> okay. thank you for the heads up on that, mike. meanwhile, president obama is nursing a split lip today after a run-in with an opponent's elbow on the basketball court. the president received 12 stitches yesterday from the white house medical team. it happened during a game with family and friends at an army base in washington. the evacuation order for a massachusetts neighborhood is lifted this morning after a tanker truck crashed and burned near a group of homes in palmer. about 100 residents special hours at temporary shelters last night. the tank was carrying propane when it burst into flames. firefighters let it burn itself off rather than extinguish it. it's not just black friday any more. tee stores are offering even more big materials to lure
shoerps all weekend long. the average shopper is expected to spend $700 this holiday season. even though it is picking up, it hasn't returned to prerecession levels. mike taibbi is monitoring how things are going. let's talk about the enticement of how things are going out there. do they appear to be work? >> the enticements will make your heads spin. i just went downstairs to jcpenney's. there's a five hour steals special. if you show up between 8:00 a.m. and 1:00, you get another discount. that plus the 65% or 70% discounts, i should walk out of here with a coat. it doesn't really work that way, but hopefully it will make your wallets open. after a disastrous 2008, the national retail federation is looking at a modest 2.3% increase in holiday sales, improvement along with other
signs that retail may be finally, slowly leading the country out of its deep recession. all the signs on black friday were all in place. >> the crowds were huge. shoppers had to try to shop sooner for that specific item. >> a hair ooh boots for myself. >> a refrigerator, a stove and a tv. >> we expect the high to be a record shopping season over the last four years. >> and because it is a race, there were some tense moments reported. a standoff between two customers who reached for the same item at the same time. >> do not push me. >> but mostly, the tension this holiday season will be over the bottom line. several bottom lines, actually, that will have a real impact on the broader economy. >> for all the things we don't know, we do know that the road to recovery runs through retail. >> and retail is tracking every tailing trend. is there more self-gifting?
so far, 15% of purchases in one survey were people buying for themselves, up from 9% on black friday last year, but well below the 26% in the last prerecession year. and how fast will black friday internet sales continue to grow inspect and to what percentage of overall sales? it's up a huge 16% this year over last year. >> we like to do as much as we can to offer similar deals online and in the stores. >> and the consumer savvy shopper has a lot to sift through this black friday weekend. not just the deals for cyber monday, but for what some are calling small business saturday, a day to support local, nonchain businesses. and then there are the new tablet and smart phone apps that will tell you exactly where in the store to shop, how to get special loyalty discounts and where to find a better price than the one you're scanning with your cell phone, new ways to shop. >> but we have to keep something in mind. no matter how strong the holiday season is, the question becomes,
what happens after the holiday season? >> well, everybody will figure that one out sometime in january. for right now, though, an ek doethsly, again, talking to people saying they're going to spend a little bit more than they did last year. although they are spending cash and trying to stay within the budget, it looks like this will be a bigger and better black friday weekend. >> here is hoping. thank you very much, mike. the buzz of britain is creating a fashion craze. coming up, how a young women in the uk are showing their fondness for kate middleton. also ahead, a big uncooperative cat. a leopard shows his spots in this defiant way. and then there's tiger, a year after scandal.
an early winter storm is coateding parts of the upper northwest with snow and more is on the way. >> good morning, alex. winter has returned here in upstate new york. it's localized. it's what we call lake effect. let me show you the setup. you've got cold air, we've got that. temperatures in the teens and 20s in that air from the lake service up. lake temperatures are in the 40s to near 50s. so that disparity in temperatures leads to the instability. then you bring that wind across these western elevations of new york state and you get the lake effect. and we're talking about some areas getting over a foot already, up there in western areas of the tug hill plateau. that's the area downwind from lake ontario. watertown had thunder snow this morning and 50-mile-an-hour wind
gusts. it's unstable here. we've had four inches in dayton so far, light flakes around and the snow band here across this part of the area has kind of fizzled out. right now, we're not looking too bad. neither are the roads this morning. take a look. they're wet and slushy. we've had the plows go by. we've seen the salt trucks. and the locals are used to this because the up here, it snows an average of over 100, 150 inches, some winters over 200 inches. meanwhile, the forecast of the rest of the northeast looks fine. although it will be breezy and nippy. mid 40s in boston and new york city running 5, 6 degrees below average. d.c. chills down to around 50. yesterday, they were around 60. and across western pennsylvania, western new york, temperatures will barely get above freezing. and along with the windchill this morning, temperatures right now feel more like 10 to 15 degrees out here. again, this would be a spring day in fargo, but it's just a late november day here in
upstate new york. back to you, alex. >> nonetheless, stay bundled up, mike seidel, thank you. coming up, new footage from seoul. this is a face-off between protesters and riot police. it took place right outside of south korea's ministry today. demonstrators wants south korea to take a stronger stance after this week's attacks. there is no sign of easing tensions right now. today, the u.s. and south korea will take off for four days of war games. i'm joined here in the studio. a very good morning to you. thank you for being here. >> good morning. >> you saw the video, the protesters there, they want south korea to take a stronger stance against north korea. but what can or should south
korea do? >> i think in the long run profess against north korea bring any good things. we have to be more patient. we have to show more genuine brotherhood. that means final peace. >> you would like to think that that might translate, though, to the government and north korea. first of all, let's get to the people, though, of north korea. what is their lifeline? >> as we all know, north korea, their tongues as most insane, the brutal in human history. i feel sorry about that. i apologize for the whole -- they always kept, you know, to the whole piece. i feel sorry deeply and --
but -- >> and you help north korean refugees. to they will tell you terrible stories? >> yes. i visited north camp in 2007, different areas. even small village there. every village, they're terrible. and the chinese people, they go to war. they lock them up. when they return to home in the evening, they release. >> so a sex slave trade industry here in addition to millions of people dying of starvation in north korea. >> that's true. in the five years 4 million people starve to death and 200,000 north korean refugees
killed. >> who lives well in north korea? does anybody live well? >> kim jong il and his forcefield of people around him. i think they're living wealthy lives. >> when you talk about thinking that long-term people need to show love, consideration, a brotherhood from south korea into the north, you also said that kim jong il is insane. he has an insane dictatorship. how do you suggest the united states go about rationalizing with someone if he is truly not to be trusted at all? >> that's true. we cannot trust this human being at all in any aspect. so those living in north korean territory, there's precious lives. we have to save them. so any strong action or strong
demonstration against north, it doesn't bring anything. >> kim jong an, what can we expect from him? >> we cannot expect anything, cruelty and kept as you see, his son looks so cool and all to south korean people all around the world about, you know -- >> well, the president of the north korean refugees, thank you for coming and sharing your insight. >> thank you so much. people may be spending cautiously this holiday season, but many folks are ready to splurge on just the right damages. gadgets. [ spongecaster ] we're here at the winter dishwashing championship, a challenge to hands this time of year. what's this? she's hurtling down that sink with no protective gear. oh, no! her hands could dry out. [ female announcer ] don't worry,
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the national retail federation study shows online holiday shoppers plan to spent a lot more than folks who flock to the stores. it's estimated online shoppers will spend about $850 overall this holiday season while shoppers overall are expected to spend close to $700 this holiday season. apple's ipad is topping lists by kids in the nation. 31% of kids age 6 to 12 want the ipad. apple has a product in the second spot as the apple is computers in general. and the nintendo ds takes the fourth spot. let's take a look at some of the other hot holiday gadgets. daniel, you've brought a lot of things to show us. >> yeah. this is some fun stuff. this is the sling box adapter. the nickname for this is a waffle iron or a sting ray. you see this cord here. it hooks up to your dish network
and the idea is it sends all the contents from your dvr to a mobile device, to your laptop. it's about $100. it's easy to hook up. >> watch it while traveling? >> exactly. it's great for people who are on the go. >> what about that? >> this is the nikond-7,000. you're getting high quality pictures, 16 megabyte. it has a great imaging sensor which means it does well in a lot of light or low light. this one is hard to find. >> let me tell you something else that's going to be hard to find is this, if you lose it. >> this is the redesigned ipod nano. >> this is smaller, lighter. look at this. i just turned it on. >> it's very tiny. you have to have small fingers to get the touch screen going on it. and you can load all your music on here. 8 gigabytes of storage space. it has a radio, a clock.
a lot of people turn this into a wristwatch, if you can believe it. >> it fits in your pocket easy, easy. >> yes. >> what is this, a helmet cam? >> yes. i'm going to pop this on. i'm probably going to regret doing this. this is the go pro camera. put this on your bike helmet. if you're surfing, going through extreme sports, you capture video while you're performing your sport. you upload it easily. you can take pictures or video, exactly. you can record hd video with this. this goes for about $179 up to about $250 or so. >> really? >> yeah. >> that's not that much at all for some of those extremists who want to get out and chronicle what they're doing out there. >> now, i would suggest you don't combine this with our next product. >> okay. talk about giving, we have a bottle with your name on it. >> this is the madia vodka. this is dutch vodka. it was designed in new york.
i don't know if you can see the label. it's using an l.e.d. screen. you can program up to 255 characters on each line. they're testing you can eventually send text messages to your vodka bottle and have this displayed somewhere. it's high tech for fun. >> you know when you say i have a bottle with your name on it? >> quite literally. >> okay. we'll have to share this. have you ever tasted it? >> i haven't. maybe later, i don't know. it's a little earlier. >> maybe between segments because you are coming back. still ahead, the rescue of one of man's best friends in distress. we'll show it to you here on msnbc saturday.
plot to go bomb yesterday's tree lighting ceremony in portland, oregon. he was arrested as a result of a fbi sting operation. north korea today accuses south korea of using civilians as human shields owe island that the north attacked this week. the u.s. and south korea are gearing you up for military exercises scheduled for sunday that were scheduled before last week's incident. secretary of state hillary clinton is reaching out to countries including china and allies about impending documents from wikileaks. u.s. officials worry that the release could damage lives. authorities say they've succeeded in driving drug traffickers from one town. 46 people have died since the outbreak started last night. and qantas airlines resumed flying the a-380 today. the first flight comes from sydney. it comes after the engine of a double decker airbus exploded in
flight. china is feeling the pressure from all sides as tensions in the koreas escalate. right now, a usair craft carrier is on its way to conduct war games with the south koreans. north korea wants china to take a strong stance against the war games and the u.s. wants china to speak out against north korea and its recent provocations. adrienne yong is live for us in beijing. which side is china taking thus far? >> morning, alex. china is trying really hard not to take any sides. the u.s. feels that china needs to reign in its neighbor. but china is trying to maintain kn neutrality of a certain kind. it wants to negotiate with all baerts in the six party talks which was designed to help end north korea's nuclear weapons program. china has been hoping that these talks would resume. china doesn't want any of the
parties concerned to take any actions that would committees la late tensions. the foreign minister made calls today to his russian and japanese counterparts to express his concern and express to the north korean ambassador yesterday as well as secretary clinton about these joint naval exercises that the u.s. is and south korea are planning to hold in the yellow sea. this is in an area that china considers its own territorial waters. so it will be interesting to see how they handle this starting when the exercises begin tomorrow, al eggs. >> adrienne, is there any indication that china may push north korea to stop escalating things? >> well, there's a possibility. now, of course, we have to understand that china's concerns are twofold. number one, it doesn't want instability because it doesn't want the possibility of 20 some million refugees pouring across its border from north korea should the regime collapse there. the other concern, of course, is the same possibility that if
anything were to unfold, that the koreas would be reunited with the backing of the u.s. that would be right on china's doorstep and that's not a situation it wants to find itself in. now just because its public remarks have been understated doesn't mean it isn't going to work behind the scenes. there's one good incentive and that's basically the chinese president, hu jintao is having a state visit to washington in january. this is the first visit the chinese president will be having in about four years and it wants everything to go as smoothly as this u.s. pressure behind the scenes. >> adrienne monk, thank you. a huge release of papers from wikileaks is expected any time now. in response, the state department is franticly reaching out to world leaders to warn them about what could be key information about them and their countries. the leaks reportedly reveal embarrassing claims against russian leadership who is
seriously concerned some of the leaks could threaten intelligence operations against al qaeda and yemen and hurt relations with hamid karzai. i'm now joined by retired army colonelist jack jacobs. good morning. >> good morning, alex. >> out of those things that i talked about, the possible items that are damaging, which one concerns you the most? >> the least important one is our relationship with afghanistan. our relations with karzai is not very good. the most important one is releasing sources from which we get intelligence in yemen and al qaeda generally. al qaeda has been fragmented and as a result, all the information that we get worldwide is vitally important to our own security and the security of our allies. and when this stuff gets released, you can expect that our sources will dry up and that's very dangerous. >> okay. so that's the intelligence realm. it's not just the military secrets, it's exchanges, jack,
by dip low mats. other state department discussions. what's the potential fallout from that? >> all bad. when you start releasing memos and communiques, exchanges between diplomates in the united states and in foreign countries about foreign leaders, our relationships with them, our tactics and strategies for developing other relationships, that's all bad news. forthright, memos and communiques are only going to expose the weak ps in our ability to conduct proper intelligence operations and proper diplomacy around the world. the fallout is not going to be good. >> why can't we stop it? >> it's very interesting. the large majority if not all of these releases from wikileaks have come from a single, solitary force. a young, low level intelligence clerk. the fact is that if a guy like this can hack into a system that's supposed to be secure, completely secure, at multiple
levels, it means that professionals, organizations in china supported by the chinese government, they're going to do a lot better. we are exposed. our cyber security is extremely weak, not just in the government, but among our businesses, banks and other enterprises. all this stuff needs to be strengthened and strengthened quickly. >> colonel jack jack jobs, thanks. >> you're very welcome. at least nine people are under arrest after a cross border tunnel for smuggling. authorities discovered the tunnel at a warehouse and it let me tell led them to a home in tijuana, mexico. this included large garages, and it had rail, ventilation. more than 40,000 pounds of marijuana has been seized and that is a street value lows to $20 million. it is now one year since disgraced golfer tiger woods' infamous car crash revealing infidelities and shocked fans that once viewed him as a role
model. k golf great ever truly regain his footing? i'm jound now by pablo. good to see you. >> good to see you. >> we talked a lot over the last year. one thing you said tiger needed to do was to get out there and be a great golfer. >> that's right. >> he doesn't appear to have done that. >> no. he didn't finish higher than fourth in 2010. what we've learned from sports and most recently michael vick is the best rehab clinic is on the field. you need to play, you need to succeed and win. tiger woods hasn't done that. >> yeah. let's talk about, though, all these things that happened to him. could you have foreseen that a year ago and the tiger that you know from following him, how do you think he's dealing with this? he's no longer number one and he's lost out on so many other things that are important. >> yeah. looking back 366 days ago, it's ridiculously quaint to think of the life that tiger woods was leading. you know, we didn't think. tiger woods, i think sports
writers had an inkling that he may have been a woman united stateser, he may have had a blue side to him. >> why was that kept quiet? >> he was kept so far removed from the press for so many years. and when rached first reported by the national en kwu irer came out, we didn't anticipate her being the first of many that would be following around tiger woods. >> what about the fact that he's opened a twitter account? this is a guy that got in trouble because of text messaging. >> i think some say you open a twitter account to look relatable. that's too simple. yes, you want to relate to fans, you want to get your name out there and be humanized. winning is the only thing that's going to cure tiger woods, if it does that. >> given that golf is such a mental game, the fact that he's lost his number one standing and the fact that there are other competitors out there that would like to get a number one standing, do you think we'll ever see tiger woods at the top again? >> i personally don't think so.
the measuring stick for all this is jack nicklaus's 18 majors, tiger woods has 14 and is turning 35 at the end of the month this year. you're right, tiger woods once held a mental advantage that was most comparable in my mind to mike tyson, in his prime when he xwrood to walk up to the ring and the opponents would be quaking in their boots. >> that was part of it. he would psychiatric others out by his mere presence. >> and that's gone. you hear commentators snidely on and off the record taking shots at tiger woods. the bottom line is, he's also older. combined with the fact that golf is psychological, his neck injuries, the problems in his life, it's hard to reconcile all of that. >> that's a fall from grace. actually, it's been interesting talking with you over this last year. don't be a stranger. >> thanks, alex. it was a terrifying encounter with a leopard. when it wandered into a village in india, the leopard fought
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britain has been hit by a bit of cake mania. one retailer reported selling out of the replicas for that dress in just an hour and that's not at all what's popular about the prince william wife to be. joining us now is becky johnson. let me get this clear. there are a lot of things that people want to copy from kate. you have the dress, the ring, and what else? >> well, her hair. her hair style is mow the most sought after. people are going to hairdressers asking for the kate.
and there are lots of magazines around telling us how to get that glossy look that she wears. the reporter went to kate's very own hairdresser, the hairdresser she's been seeing for the past ten years and apparently the secret to kate's lovely hair is regular cuts and a bit of conditioner. so it sounds like she's not going to be too much of a high maintenance princess. >> what about this new report out there, becky, that suggests 3 billion people are expected to tune in to watch the royal wedding. can you put that into perspective for us? >> well, it's just a huge number. and this is a number of people that will tune in from across the world to watch the wedding in april. yes, to put that into context, around 750 million people tuned in to watch princess diana's wedding. now, princess diana's funeral, around 2.5 billion people watched that from around the world. michael jackson's funeral, around up to 3 billion people watched that. and they're saying predictions
that even more people, more than 3 billion are going to tune in to watch prince william marry hins his princess. >> we'll all be tuning in over here, that's for sure. becky, what about a 3d wedding? what's that i read? >> about the what? >> about a 3d wedding. that what happens when broadcasting it, they want to do it so high tech and so modern that they would broadcast it in 3d. >> well, absolutely. and i mean, as you can imagine, so many people are going to want to tune in. here in england, everybody is going to be given a public holiday to watch the wedding. so they're going to be wanting to broadcast it so everyone can experience it as if they're there. and yes, they're going to be using the most modern technology in order to do that, as you would imagine. >> and what about the dress? who is her favorite designer and might that person be able to design the dress?
>> well, we're still waiting to hear who the designer will be. and, of course, there's a lot of hype around it because whoever designs this dress, it will totally change their lives. they're going to be win of the world's most famous designers. now, one of the kate's favorite designers is daniela ishayelle. she designed that blue dress dr kate wore when announcing her engagement to prince william. so she's the hot favorite. as i say, that's not been announced yet. but whoever the designer is, it will change their life because everybody will want to copy and have their wedding dress designed by the same person that designs kate middleton's dress. >> you remember the name from princess diana's dress. a dog in northern california is lucky to be alive. homer ran off late on thanksgiving night and fell down
a 30-foot hole. firefighters discovered the yellow lab yesterday afternoon after a frigid night. they were able to use rope to rescue him. it is not first time the dog has run off. they've nicknamed him roamer. [ male announcer ] think you can only charge one thing at a time...? consider this: drop & go charging for up to 4 devices at once...
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a new assessment on the coming year. a mixed bag. unemployment may not change for much of the coming year. joining me from washington, d.c. is neil irwin. good morning to you. >> good morning, alex. >> i read your article. it's not going to change much, but let's say it will incrementally get better, 9.6 to projected maybe to 9%? >> that's what the guys at the federal reserve are projecting.
they four times a year make these economic forecasts. about 8% by the end of 2012. so that's progress. it's not where we want to be, but it's progress and reflects a steady growth path that they're envisioning. >> this is the part that hits me as i read your article. an extraordinary bounce back is under way in the nation's corporate sector. profits rebounding 28%. by contrast, compensation and business spending with employees is going up 7.6%. where's the disconnect there? >> the corporate sector rebounded quickly from this downturn, profits are way up. if you don't adjust for inflation, they're at all-time highs. what's going on is there's a few things. first of all, the banks aren't taking giant losses. those were depressing earnings. you have earnings from overseas. businesses do business in china
and they're making earnings over there. that's not the same as making profits here. also a general rebound in the economy. things were so bad in 2008/2009 that they're getting back on their feet. it is not translating to jobs for american workers. >> i'm trying to look at the silver lining here. where will those jobs come from? >> well, it doesn't look like there's any single industry set to take off. we've seen pretty decent gains in manufacturing so far this year. the housing market is still bottoming so it won't be construction any time soon. presumably there will be more housing construction, when that turns around. retails are okay. temporary jobs are strong. a mixed bag. we have the dot com sector emerge and jobs were a big driver of that. there doesn't seem to be anything on the horizon just yet. maybe some new industry will emerge. >> here's hoping fingers crossed